The United States Treasury Secretary, Scott Besenthe held in a private meeting with investors that the current tariff confrontation with China “cannot be sustained” and that both powers must find ways for DIt is scanning the commercial tensions “in the very short term.”
The statement, made during an FGold by closed doors organized by JPMorgan Chase in Washingtonhe surprised the attendees for the direct tone. Besent compared the current situation with a “de facto commercial embargo” and ruled out that Washington’s intention is a total separation of the Chinese economy. According to the event, he stressed that crossed tariffs – 145% by the US and 125% from China – are far from sustainable.
Besent was moderately optimistic about a relief of tensions In the coming months, although he warned that an integral agreement could be delayed between two and three years. “Formal negotiations with China have not yet begun,” he said, and reiterated that any future understanding should imply a reconfiguration of bilateral trade that allows the US to strengthen its manufacturing industry, compared to what it described as a Chinese model focused on exports and discouragement of internal consumption.
Consulted later, President Donald Trump tried to reduce drama to the statements of the Treasury Secretary. “We are fine with China,” he said before journalists. He added: “We are going to be very good with them, and they with us. We will see what happens. But in the end they will have to make an agreement, because if not, they will not be able to operate in the United States.” Trump also suggested that final tariffs could be well below the 145% established in a provisional way: “It will not be even about that.”
The announcement context is particularly significant: Besent spoke while spring meetings of the International Monetary Fund and the World Bank passedwith the presence of finance ministers and central bankers around the world. The secretary plans to offer on Wednesday a public presentation on the state of the global financial system, at an event of the Institute of International Finance.
In parallel, Presidential spokeswoman Karoline Leavitt confirmed that 18 countries have presented commercial proposals to the White House and that Trump’s economic team will hold meetings this week with delegations from 34 nations. The strategy seeks to show openness at a critical moment, although for now there are no concrete advances with China.
In addition, Political He informed that the administration is close to announcing frame agreements with Japan and India. It would be, in both cases, general commitments that would pave the land for future more detailed negotiations. Leavitt did not specify if these ads will be enough to prevent tariffs at the end of the current 90 -day pause.
The market reacted positively to Besent’s words. The S&P 500 index rose to 2.9% and closed with an increase of 2.5%, while the dollar was strengthened and treasure bonds stabilized its performance.
By rn
